Raja Venkatraman’s recommends three stocks for 19 February

The BSE 150 MidCap Index closed 0.50% higher, while the BSE 250 SmallCap Index climbed 0.39%.

Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)

NAM-INDIA: buy above ₹980, stop ₹940 target ₹1080 (Multiday)

SBILIFE: buy above ₹2063, stop ₹2015 target ₹2210 (Multiday)

BANDHANBANK: buy above ₹172, stop ₹163 target ₹188 (Multiday)

Stock market performance | 18 February

On 18 February, India’s benchmark equity indices extended their winning streak for the third straight session closing higher in a volatile trade. The Nifty managed to stay above the 25,800 mark, supported by broad-based buying across sectors, though IT stocks remained under pressure as the sole laggard. The market opened strong but quickly lost momentum, with selling in the first hour dragging the Nifty to an intraday low of 25,645.15.

However, sentiment improved as the day progressed, and sustained buying in the final hour helped the index recover and finish near its high. By the close, the Sensex had gained 283.29 points, or 0.34%, to settle at 83,734.25, while the Nifty advanced 93.95 points, or 0.37%, to end at 25,819.35. Broader markets outperformed, with the Nifty Midcap and Smallcap indices rising 0.5% each, reflecting resilience and investor interest beyond the frontline stocks.

Outlook for trading

Lack of clarity continues to remain as the market continues to keep us guessing about the next line of action. As trends remain hesitant, we need to now see how to adopt the current trends that are unfolding. We are now looking at the possibility of trend continuing higher, however news-flow will remain an issue that will continue to create problem for the way ahead.

Moving to the charts we note that the trends have been largely oriented towards trading rather than investing. Hence, from a trading perspective we can note that on the daily charts moved beyond the gap area highlighted combining with a move above 61.8% Fibonacci resistance. Now, with a possibility of move towards the cloud region around 25875-25900 the trends could encounter some resistance on Thursday.

Sentiment remained measured due to weak global technology cues and broader risk-off behavior in overseas markets, while expectations around macro data and corporate earnings continued to influence positioning. As the bullish momentum seems to be still eluding, we can note that there seems to be a withdrawal of selling pressure.

For undertaking shorts, we need to see Nifty move below 25700 for a drop once again to 25500 where we see the next set of supports emerging. If we witness a 30-minute range breakout today we can consider to trade on lower else the trends still remain tentative. Currently we expect some supports to kick in. As ranging market is in play, we need to be quick in profit taking as we the trend does not have sufficient steam to move strongly in either direction.

The readings from the Option Data suggest that PCR has moved above 1, highlighting that the trends are at an important stage with some Put writing at 25700 levels continues to defend the higher levels fighting the rise. At this juncture we have to pay attention to multiple news triggers, the combination of global tariff threats, cautious investor sentiment, and domestic economic challenges contributed to the sharp market decline and volatility in the rupee.

Overall, the PCR is steady holding above 1 and also with some steady Put writing at 25700 could now open doors to higher levels. Nifty now seeks to contest the next resistance around 25900 mark while Bank Nifty aims to clear 62000 as Options data are clearly favoring strong bullishness that can persist through the week.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

NAM-INDIA (current market price ₹978.55) – buy above ₹980, stop ₹940 target ₹1080 (Multiday)

• Why it’s recommended: Nippon Life India Asset Management Ltd (NAM-INDIA) is one of India’s largest and fastest-growing asset management companies. Post the strong revival seen from lows post Q3 numbers the prices spent time in consolidation and is now showing some sharp declines seen since last few months have been laid to rest a steady revival is indicating a strong recovery. On the daily charts we also found a move beyond the cloud region getting formed leading to a sustained revival. With a push beyond the cloud region and a strong upside has emerged in the previous trading sessions. Buy.
• Key metrics:
  • P/E: 44.20,
  • 52-week high: ₹1003.90,
  • Volume: 567.46K
• Technical analysis: Support at ₹1320, resistance at ₹1555.
• Risk factors: sudden policy changes, tax hikes, and potential advertising bans, entry of new global players.
• Buy : above ₹980.
• Stop loss: ₹940.
• Target price: ₹1080. (2 Months)

SBI LIFE (current market price ₹2059.60) – buy above ₹2063, stop ₹2015 target ₹2210 (Multiday)

• Why it’s recommended: SBI Life Insurance Co. Ltd (SBILIFE), is a leading, listed private life insurer in India. They provide comprehensive individual and group products. The revival from the cloud support post the Q3 numbers has been backed by volume and the strong thrust seen in the last two sessions are clearly indicating strong thrust post the numbers above the recent range is clearly indicating are not giving up. With sustained upmove being witnessed we can consider going long now.
• Key metrics:
  • P/E: 83.30,
  • 52-week high: ₹2116,
  • Volume: 353.14K.
• Technical analysis: Support at ₹1980, resistance at ₹2250.
• Risk factors: Competition and pricing pressure, persistence and surrender risk and variations in actual death or health claims.
• Buy : above ₹2063
• Stop loss: ₹2015
• Target price: ₹2210 (2 Months)

Bandhan Bank (current market price Rs. 171.74) – buy above ₹172, stop ₹163 target ₹188 (Multiday)

Why it’s recommended: Bandhan Bank Ltd headquartered in Kolkata was the first microfinance institution in India to receive a universal banking license from the Reserve Bank of India. The sharp upside momentum seen on Wednesday showed resolve to move higher after crossing important resistance zones around 169. The disappointing Q3 numbers seem to be getting prices in for some steady upward the trends to show an upmove in the next few days. The higher high higher low since last few weeks seems to be producing a sharp breakout above recent value area region with volumes. Go long.

• Key metrics:
  • P/E Ratio: 27.47
  • 52-week high: ₹192.42
  • Volume: 6.14M
• Technical analysis: Support at ₹160, resistance at ₹190.
• Risk factors: Risks are primarily centered around asset quality volatility, high exposure to Microfinance Institution (MFI) loans, and recent operational challenge.
• Buy : above ₹172.
• Stop loss: ₹163.
• Target price: ₹188.

Raja Venkatraman is co-founder, NeoTrader. His SEBI-registered research analyst registration no. isINH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.